The Income Tax department issues notices to some assessees and requires them to respond. Abhishek Murali, president, All India Tax Payers’ Association (AITPA), decodes all you need to know about such notices.
What is an income tax notice? What are the common reasons for issuing it?
Once a return of income is filed, it has to be processed and accepted. This is normally a system-driven process. The computer algorithm or Income Tax Officer/Commissioner may determine that the return of income has to be looked into regarding certain specific aspects. This could be due to a computer flagging specific parameters or because information had been received from sources about the taxpayers’ income. Hence, a notice is issued to the taxpayer to check on the same, before making an addition to the income (and increasing the tax payable).
